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Doctors, diagnostic cartels fleecing patients: Harsh Vardhan

July 23,2024

NEW DELHI: Expressing concern over a likely “cartelization” among diagnostic centres and pathological laboratories in Delhi, health minister Harsh Vardhan on Tuesday told Lok Sabha that patients are subjected to unnecessary tests by the doctors who are guided by the “lucre of commissions” offered by diagnostic centres.

He also said the government is considering to bring some type of oversight for pathological laboratories and diagnostic centres to end the corrupt practices including possible nexus between doctors and the laboratories, and cartelization among diagnostic centres.

Vardhan was laying a statement in the House on a sting operation by a private TV channel, which exposed some doctors collecting 30-50% commissions on magnetic resonance imaging (MRI), CT Scans, ultra sound, routine pathological tests.

“A kind of cartelization has resulted in so far as this aspect of the medical economy of Delhi is concerned. All the private laboratories and diagnostic centres charge roughly the same amounts for pathological tests and clinical examinations. Patients have no option but to pay up the exorbitant fees…This exacerbates their physical and mental agony,” he said.

On the likely doctor and diagnostic centre nexus, the minister said that the “racket” is leading to unjustified profit margins. “This is apparent from the rate of commissions paid. In quite a few parts of the sting operation, the staff of the diagnostic centres reveal that they pay referring doctors as much as 50% commission on expensive tests like MRI. This indicates that even after paying the huge rate of commission these clinics report good profits,” Vardhan said.

Stating that accepting commissions is a violation of code of ethics, the minister said he has written to the president of Medical Council of India (MCI) to call an emergency meeting of its ethics committee and post the minutes of the meeting on its website.

The minister also said “nefarious” practices are thriving in the medical sector and patients need to be protected from them. “The laissez faire spirit that dominates this business in India works to the disadvantage of the consumer and needs correction,” he said.

Underlining the need to codify laws relating to clinical/ diagnostic examinations, Vardhan said his ministry is drawing up a panel of reputed medical practitioners and consumer law experts to suggest measures for introducing greater transparency and accountability in medical practices.

Earlier in the day, the minister assured Rajya Sabha members that the government would soon address the issue of rising cost of healthcare. Raising the issue during Zero Hour, Congress MP Shantaram Naik said hospitals should not be allowed to trade in medical devices and charge high prices for these from patients.

“Patients were being forced to pay double or even triple the price for medical devices at hospitals. As most of these are not available in the open market, patients can’t check prices and are held hostage by hospitals, which force them to buy at the price they quote,” Naik said. He added the government should make it mandatory for hospitals to declare the maximum retail price on each device could help cap the price.

Source: TOI